On Monday the price of gold bullion fell by 7.7%, the largest one-day fall in its price since 1983, and the third biggest fall on record. Analysts are somewhat puzzled by the fall in gold prices over the past few weeks (it is down about 30% from its high) as there have been no significant changes in underlying fundamentals. Could it be that there was a gold bubble? Click here to read more.
According to Robert Shiller , speaking at Davos, Bitcoin is a perfect example of a bubble - story here . Shiller sees Bitcoin as a backwards step in the evolution of money. George Selgin , a free banker, takes an opposing view - click here . Although he doesn't believe that Bitcoin is money, he sees its development as a fascinating turn in the evolution of money. In particular, he lauds the fact that Bitcoin production is constrained and cannot be infinite. There is a short video below where Bitcoin explain how it works.